ECO 1302- Final Exam Guide - Comprehensive Notes for the exam ( 24 pages long!)
29 Mar 2018
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Chapter 1: the scope and method of economics: Economics: the study of how individuals and societies choose to use the scare resources that nature and previous generations have provided. The key word in the definition is choose. Economics is a behavioral, or social, science. Economics is the study of how people make choices. Economics covers all aspects of your daily life whether it be short term or long term. Economics has three fundamental concepts: opportunity cost, marginalism, efficient markets, opportunity cost: Opportunity cost: the best alternative that we forgo, or give up, when we make a choice or decision. Resources are limited, therefore, we have to make choices. For example, if you want to do grocery shopping, you have limited budget, car space and therefore you are forces to make choices as opposed to buying everything that you want: marginalism:
